What is personal guarantee insurance?

Personal Guarantee Insurance has been designed to give business owners and directors the confidence to focus on their business’ growth objectives without worrying about personal risk.

A Personal Guarantee is an unsecured ‘promise’ from a business owner or director to guarantee that payment for a loan will be made by them in the event that their business is not able to pay. This is why, when raising finance, a lender will often ask for a Personal Guarantee to provide additional security. Often, without this, the finance cannot be secured.

The assumption by the business owner/director is, of course, that signing the Personal Guarantee carries little to no risk as the business will provide. However, unforeseen circumstances can arise and that is where Personal Guarantee Insurance steps in: to eliminate the risk to the director’s personal estate.


If you are a business owner and have signed a Personal Guarantee to secure finance, the last thing you anticipate is being unable to cover the repayments. However, things out of your control can unfortunately have adverse effects:

If your business becomes insolvent, the lender will call on the Personal Guarantee to cover any financial obligations – and the amount the lender asks for can rise if interest or other costs are added – leading to the signatory losing important assets.

Personal Guarantee Insurance can be tailored to suit you and the amount you want to insure, and importantly to give you the freedom to pursue growth without personal risk.

Customers who require a quote or more information can click on the following link which will take them to an application form. If they complete and submit the form an underwriter will then contact them to discuss their requirements  https://csp.purbeckinsurance.co.uk/?rid=06b79b0a-b26a-4e17-99dc-62ebe6881cde

We can help advise what insurance cover you do, and do not, need